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1. Impacts of the COVID-19 pandemic on productivity growth in Canada
Articles and reports: 36-28-0001202100500004
Description:
The COVID-19 pandemic has changed how production occurs in the economy in two ways. One is the full or partial closure of non-essential activities such as travel, hospitality, arts and entertainment, personal services, airlines, etc. The other is the widespread shift from in-office work to working from home. This Insights article depicts labour productivity growth in Canada and its sources by industry during the COVID-19 pandemic in order to examine the implications these changes may have had on the productivity performance of the economy.
Release date: 2021-05-26
2. Business Sector Intangible Capital and Sources of Labour Productivity Growth in Canada
Articles and reports: 11F0019M2020005
Description:
Understanding intangible investments is essential for providing accurate measures of gross fixed capital formation (GFCF), gross domestic product (GDP) and productivity growth, and for understanding the innovation system. Statistical agencies need measures of intangible investment to produce economic statistics on aggregate activity that accurately measure concepts such as GDP, GFCF or savings. The levels of GDP, GFCF and savings will be underestimated to the extent that expenditures are incorrectly classified as intermediate inputs that are fully consumed during the period being measured—and not as investments that are not fully consumed during the period when the expenditures are incurred. Estimates for GDP and productivity growth rates may be similarly underestimated. This paper updates and expands upon the intangible capital estimates presented by Baldwin et al. (2009), who extended already measured intangibles (i.e., research and development [R&D], software, mineral exploration) to include additional asset classes consistent with international research on intangible capital measurement (see Corrado, Hulten and Sichel 2009).
Release date: 2020-02-12
3. Technological Frontiers and Post-2000 Productivity Growth in Canada
Articles and reports: 11F0019M2020001
Description:
Multifactor productivity (MFP) declined in Canada from 2000 to 2009 and then recovered after. The movements in productivity since 2000 have attracted great attention from researchers and policy makers because productivity is important both for economic growth and for improvements in living standards. This paper applies the stochastic frontier framework to decompose each firm’s MFP into two parts: its technological frontier and its technical efficiency. Change in the aggregate technological frontier refers to improvements in the productivity potential of an economy, i.e., the maximum productivity of an economy if all firms are fully efficient. Aggregate technical efficiency reflects the economy’s capacity to achieve that potential. The results of this decomposition can show whether the movements in productivity after 2000 in Canada were mainly the result of changes in the technological frontier and productivity potential or of changes in the technical efficiency.
Release date: 2020-01-17
4. Environmentally Adjusted Productivity Growth and the Market Price of Greenhouse Gas Emissions for the Canadian Manufacturing Sector Archived
Articles and reports: 11-626-X2019008
Description: This article in the Economic Insights series examines how accounting for greenhouse gas emissions as part of economic activity changes the measurement of productivity growth.
Release date: 2019-05-08
5. Environmentally Adjusted Multifactor Productivity Growth for the Canadian Manufacturing Sector Archived
Articles and reports: 11F0019M2019013
Description: The need to measure both the desirable outputs (goods and services) and the undesirable outputs (emissions of greenhouse gases [GHGs] and criteria air contaminants [CACs]) from economic activity is becoming increasingly important as economic performance and environmental performance become ever more intertwined. Standard measures of multifactor productivity (MFP) growth provide insights into rising standards of living and the performance of economies, but they may be misleading if only desirable outputs are considered. This study presents estimates of environmentally adjusted multifactor productivity (EAMFP) growth using a new comprehensive database. This database contains information on GHG and CAC emissions, as well as on the production activities of Canadian manufacturers.
Release date: 2019-05-08
6. Long-run Productivity Dispersion in Canadian Manufacturing Archived
Articles and reports: 11-626-X2018084
Description:
This Economic Insights article examines the changes in productivity dispersion in Canadian manufacturing—that is, the difference between the productivity performance of the most productive plants (frontier plants) and the productivity performance of all remaining plants (non frontier plants). It examines the relationship between changes in productivity dispersion, aggregate manufacturing productivity growth and exchange rate movements.
Release date: 2018-11-06
7. Accounting for Slower Productivity Growth in the Canadian Business Sector After 2000: Do Measurement Issues Matter? Archived
Articles and reports: 11F0019M2018409
Description:
Labour productivity growth and multifactor productivity (MFP) growth slowed in Canada and other advanced economies after 2000. Several measurement challenges have been suggested as potential explanations for this trend. These include the measurement of intangible capital in a digital economy, the measurement of natural resource capital in the resource extraction sectors, the effect of infrastructure capital and the effect of cyclical fluctuations in the utilization of capital in industries adversely affected by world demand. This paper focuses on the role of these measurement issues in the slower productivity growth observed in Canada.
Release date: 2018-10-29
8. The Industry Origins of Canada’s Weaker Labour Productivity Performance and the Role of Structural Adjustment in the 1990s and the 2000s Archived
Articles and reports: 11F0019M2016373
Description:
This paper examines how much of the slowdown in productivity growth observed in Canada’s business sector between the 1990s (1990 to 1999) and the 2000s (2000 to 2014) was due to weaker productivity growth within industries and how much was due to structural adjustment. The analysis makes use of a decomposition method that differs from many of the standard labour productivity decomposition approaches commonly found in the literature and allows the contributions of changes in the importance of individual industries to be calculated.
Release date: 2016-06-13
9. Accounting for Natural Capital in Productivity of the Mining and Oil and Gas Sector Archived
Articles and reports: 11F0019M2015372
Description: This paper presents a growth accounting framework in which subsoil mineral and energy resources are recognized as natural capital input into the production process. It is the first study of its kind in Canada. Firstly, the income attributable to subsoil resources, or resource rent, is estimated as a surplus value after all extraction costs and normal returns on produced capital have been accounted for. The value of a resource reserve is then estimated as the present value of the future resource rents generated from the efficient extraction of the reserve. Lastly, with extraction as the observed service flows of natural capital, multifactor productivity (MFP) growth and the other sources of economic growth can be reassessed by updating the income shares of all inputs, and then, by estimating the contribution to growth coming from changes in the value of natural capital input. This framework is then applied to the Canadian oil and gas extraction sector.
Release date: 2015-12-14
10. Empirical Evidence from Canadian Firm-level Data on the Relationship Between Trade and Productivity Performance Archived
Articles and reports: 11F0027M2015097
Description:
Canada’s aggregate productivity performance has closely tracked changes in Canada’s trading environment. To gain a better understanding of the link, the Economic Analysis Division of Statistics Canada has conducted a set of studies that investigate whether and how changes in the trading environment, brought about by trade liberalization policies and exchange-rate movements, contributed to productivity growth. The firm-level analysis provides insights into the productivity dynamics that arise from within-industry growth and restructuring as resources are shifted from declining to growing industries. The paper provides an overview of the key Canadian empirical findings over the last two decades.
Release date: 2015-06-16

Data (1)

Data (1) ((1 result))

1. The Canadian Productivity Accounts: Data Archived
Table: 15-003-X
Description:
The Canadian Productivity Accounts: Data is an electronic publication that contains a series of tables on productivity growth and related variables for the business sector and its 51 major sub-sectors based on the North American Industry Classification System. These tables allow users to have a broader perspective on Canadian economic performance. They complement the information available on CANSIM which offers more detail, particularly at the industry level.
Canadian Productivity Accounts (CPA) are responsible for producing, analyzing and disseminating Statistics Canada's official data on productivity and for producing and integrating data on employment, hours worked and capital services consistent with the Canadian System of National Accounts. To this end, the CPA comprise three programs. The quarterly program provides current estimates on labour productivity and labour costs at the aggregate level for 15 industry groups. The annual national program provides yearly estimates on labour productivity, multifactor productivity and several indicators of sources of growth and competitiveness as they apply to the major sectors of the economy and to the industry level. Lastly, the annual provincial program, as an integral part of the Provincial Economic Accounts, provides estimates on employment, hours worked, labour productivity and labour costs at the industry level for each province and territory.
The Canadian Productivity Accounts: Data covers four series of statistical tables:
Table 1: Output, labour compensation, capital cost and cost of intermediate inputs in current dollars
Table 2: Productivity and related measures
Table 3: Productivity and related measures for the business sector, Canada and United States
Table 4: Productivity and related measures for the manufacturing sector, Canada and United States
Productivity measures the efficiency with which inputs (labour and capital in particular) are utilized in production. Productivity measures can be applied to a single input, such as labour productivity (output per hour worked), as well as to multifactor productivity (output per unit of combined labour and capital inputs). Statistics Canada produces these two main measures of productivity, but other productivity ratios can also be measured (e.g., output per unit of capital services).
Release date: 2007-12-06

Analysis (87)

Analysis (87) (40 to 50 of 87 results)

41. Trade Liberalization and Productivity Dynamics: Evidence from Canada Archived
Articles and reports: 11F0027M2008051
Geography: Canada
Description:
This paper investigates the productivity effects of the Canada-United States Free Trade Agreement (FTA) on Canadian manufacturing. It finds that Canadian tariff cuts increased exit rates among moderately productive non-exporting plants. This led to the reallocation of market share toward highly productive plants, which helps explain why aggregate productivity gains were observed when Canadian tariffs were reduced. The paper also finds that all of the within-plant productivity gains resulting from the U.S. tariff cuts involved exporters and, especially, new entrants into the export market. It demonstrates that any lack of output responses and labour-shedding as a consequence of the FTA were experienced by Canadian plants who were non-exporters, while exporters captured the gains from the FTA.
Release date: 2008-05-07
42. Manufacturing: The Year 2007 in Review Archived
Articles and reports: 11-621-M2008070
Geography: Canada
Description:
This study reviews status and trends for the manufacturing sector in 2007. It analyses major regional and industry shifts in production and put them in the context of major socio-economic drivers such as domestic demand and exports. Employment, productivity and profitability indicators are also presented.
Release date: 2008-04-29
43. An Examination of Public Capital's Role in Production Archived
Articles and reports: 11F0027M2008050
Geography: Canada
Description:
This paper examines whether or not the long-term government bond rate could reasonably be employed as the rate of return on public capital when calculating public sector gross domestic product. It finds that the rate of return on public capital is lower than often reported and is roughly consistent with the rate of return on private capital. Given that there is a range of estimates that are plausible, the paper concludes that the long-run government bond rate could be used as a conservative estimate for the rate of return for public infrastructure.
Previous studies have shown that production function estimates tend to find rates of return that are implausibly large, while cost function estimates appear more reasonable. This paper shows that public capital and total factor productivity (TFP) growth behave similarly, and argues that production function estimates for the impact of public capital overstate its impact as a result, catching part of what belongs in estimates of TFP. It also shows that the similarity between the growth in public capital and TFP leads to a large confidence interval around public capital elasticity estimates derived from the production function framework. The paper then proceeds by generating a confidence interval from the production function estimated first with and then without TFP growth. It then uses a cost function to pinpoint more precisely estimates for the marginal cost savings from public capital. Importantly, the estimate derived from the cost function is found in the lower part of the confidence interval derived from the production function. The rate of return associated with the overlapping estimates is then shown to cover a range that extends from the average long-run government bond rate to the rate of return on private capital.
Release date: 2008-04-15
44. Innovation Capabilities: Technology Use, Productivity Growth and Business Performance: Evidence from Canadian Technology Surveys Archived
Articles and reports: 11-622-M2007016
Geography: Canada
Description:
This paper summarizes the results of several research studies conducted by the Micro-economic Analysis Division of Statistics Canada that investigate the impact of advanced technology use on business performance. These studies combine establishment-level survey data on advanced technology practices with longitudinal data that measure changes in relative performance. Together, these studies provide strong evidence that technology strategies have considerable bearing on competitive outcomes after other correlates of plant performance are taken into account. Advanced communications technologies warrant special emphasis, as the use of these technologies has been shown to be closely associated with changes in relative productivity.
Release date: 2007-12-05
45. Global Links: Multinationals in Canada: An Overview of Research at Statistics Canada Archived
Articles and reports: 11-622-M2007014
Geography: Canada
Description:
The paper's main objective is to provide a concise synthesis of a wide array of data and research on multinationals originating in Statistics Canada, focusing on both historical and current studies.
Chapter 2 discusses the macroeconomic contribution of foreign multinationals, focusing on two leading indicators of foreign multinational activity, foreign control and foreign direct investment. This chapter also describes studies that evaluate the contribution that foreign-controlled companies make to aggregate trade flows, linking changes in multinational trade intensity to the strategic reorganization of their production activities.
Chapter 3 concentrates on the strategies and activities of foreign multinationals that are relevant to ongoing debates over whether the presence of foreign multinationals promotes, or hampers, Canada's industrial competitiveness. This chapter first examines evidence that domestic and foreign firms respond differently to domestic market conditions. Second, it asks whether foreign firms compete in different ways than domestic firms do. Third, it examines the relative emphasis that foreign multinationals place on innovation and technology practices, and reports on the relationship between these activities and observable market outcomes. Fourth, it reports on the contribution that foreign-controlled firms make to productivity growth. Fifth, it discusses new research that focuses on the relationship between foreign ownership and head-office employment. Studies in these areas speak directly to the issue of whether foreign multinationals truncate or develop their corporate activities in host markets.
Chapter 4 focuses on studies that examine the foreign activities of Canadian-owned multinationals and how their domestic plants compare to foreign-controlled plants operating in Canada.
Chapter 5 offers an appraisal of Statistics Canada's research on multinationals.
Release date: 2007-11-13
46. Productivity Performance in Canada, 1961 to 2005 Archived
Articles and reports: 15-206-X2007011
Description:
This study examines Canadian productivity performance over the period 1961 to 2005. It investigates labour productivity growth and the sources of improvements therein-multifactor productivity growth, capital intensity, and skill upgrading. It also examines the contribution that productivity growth has made to economic growth, and to improvement on living standards. Finally, this study investigates the share of income going to labour, and the real hourly compensation of workers. This publication makes use of the new KLEMS database released on June 25, 2007 (http://www.statcan.gc.ca/pub/13-605-x/13-605-x2007005-eng.htm).
Release date: 2007-09-13
47. A Comparison of GDP Per Capita in Canada and the United States from 1994 to 2005 Archived
Articles and reports: 11-624-M2007016
Geography: Canada
Description:
This study examines differences in gross domestic product (GDP) per capita between Canada and the United States from 1994 to 2005. The gap in GDP per capita between the two countries has narrowed slightly over this period. The study decomposed the gap into two components: one due to labour productivity and one due to labour market conditions, and shows that the relative importance of the two changed considerably after 2000. The output gap has narrowed slightly since 2000, primarily because Canada's labour market experienced a faster rate of job growth relative to its population than did the United States.
Release date: 2007-08-31
48. Long-term Productivity Growth in Canada and the United States Archived
Articles and reports: 15-206-X2007013
Geography: Canada
Description:
This paper compares long-run growth in labour productivity in Canada and the United States from 1961 to 2006. Over the entire period labour productivity in both countries grew at about the same rate. But Canadian growth exceeded that of the United States up to the early 1980s. Since then, U.S. labour productivity growth has exceeded Canadian growth. The gap has widened, particularly after 2000. The paper also decomposes labour productivity growth into three components' that arising from increases in capital intensity, from increases in the skill level of the labour force (due to changes in labour composition) and a residual (multifactor productivity growth). The first two components (both arising from investment, one in machinery and structures, the other in training) were more important in Canada. The third (the residual often referred to as technological progress) was larger in the United States.
Release date: 2007-08-28
49. Gross domestic product and employment growth Archived
Articles and reports: 75-001-X200710313183
Geography: Canada
Description:
A variety of factors contributed to the slowdown of output growth relative to employment growth during 2006. However, 2006 was not unique, gross domestic product and job growth rates have converged frequently in recent years, including most of 2002 and 2003. After reviewing the sources of last year's productivity slowdown by industry, the negative impact of labour shortages on the quality of labour, especially in western Canada, is examined
Release date: 2007-06-19
50. Urban Economies and Productivity Archived
Articles and reports: 11F0027M2007045
Geography: Canada
Description:
Productivity levels and productivity growth rates vary significantly over space. These differences are perhaps most pronounced between countries, but they remain acutely evident within national spaces as economic growth favors some cities and regions and not others. In this paper, we map the spatial variation in productivity levels across Canadian cities and we model the underlying determinants of that variation. We have two main goals. First, to confirm the existence, the nature and the size of agglomeration economies, that is, the gains in efficiency related to the spatial clustering of economic activity. We focus attention on the impacts of buyer-supplier networks, labour market pooling and knowledge spillovers. Second, we identify the geographical extent of knowledge spillovers using information on the location of individual manufacturing plants. Plant-level data developed by the Micro-economic Analysis Division of Statistics Canada underpin the analysis. After controlling for a series of plant and firm characteristics, analysis reveals that the productivity performance of plants is positively influenced by all three of Marshall's mechanisms of agglomeration (Marshall, 1920). The analysis also shows that the effect of knowledge spillovers on productivity is spatially circumscribed, extending, at most, only 10 km beyond individual plants. The reliance of individual businesses on place-based economies varies across the sectors to which the businesses are aggregated. These sectors are defined by the factors that influence the process of competition'access to natural resources, labour costs, scale economies, product differentiation, and the application of scientific knowledge. Neither labour market pooling, buyer-supplier networks nor knowledge spillovers are universally important across all sectors. This paper provides confirmation of the importance of agglomeration, while also providing evidence that external economies are spatially bounded and not universally important across all industries.
Release date: 2007-06-18

Reference (7)

Reference (7) ((7 results))

1. Productivity: What Is It? How Is It Measured? What Has Canada's Performance Been? Archived
Surveys and statistical programs – Documentation: 15-206-X2008017
Description:
This paper provides an overview of the productivity program at Statistics Canada and a brief description of Canada's productivity performance. The paper defines productivity and the various measures that are used to investigate different aspects of productivity growth. It describes the difference between partial productivity measures (such as labour productivity) and a more complete measure (multifactor productivity) and the advantages and disadvantages of each. The paper explains why productivity is important. It outlines how productivity growth fits into the growth accounting framework and how this framework is used to examine the various sources of economic growth. The paper briefly discusses the challenges that face statisticians in measuring productivity growth. It also provides an overview of Canada's long-term productivity performance and compares Canada to the United States - both in terms of productivity levels and productivity growth rates.
Release date: 2008-02-25
2. User Guide for Statistics Canada's Annual Multifactor Productivity Program Archived
Surveys and statistical programs – Documentation: 15-206-X2007014
Description:
The Canadian Productivity Accounts (CPA) of Statistics Canada maintain two multifactor productivity (MFP) programs.
The Major Sector Multifactor Productivity Program develops the indexes of MFP for the total business sector and major industry groups in the business sector.
The Industry Multifactor Productivity Program or the Industry KLEMS Productivity Program develops the industry productivity database that includes MFP indexes, output, capital (K), labour (L), energy (E), materials (M) and services (S) inputs for the individual industries of the business sector at various levels of industry aggregation. This paper describes the methodologies and data sources that are used to construct the major sector MFP indexes and the industry productivity database (or the KLEMS database). More specifically, this paper is meant to:provide a background of the major sector MFP program and the industry KLEMS productivity program;present the methodology for measuring MFP;describe the data sources and data available from the MFP programs;present a quality rating of the industry KLEMS productivity data; anddescribe the research agenda related to the MFP program.
Release date: 2007-12-06
3. Revisions to the Quarterly Labour Productivity Estimates Archived
Surveys and statistical programs – Documentation: 15-206-X2007012
Description:
This paper examines the various products associated with the quarterly labour productivity program. It outlines the nature of the volatility in the very short-run estimates and examines properties of the revisions made to the estimates of Canadian labour productivity and its components (gross domestic product and hours worked) since the inception of the program in 2001.
Release date: 2007-10-18
4. Multifactor Productivity in Canada: An Evaluation of Alternative Methods of Estimating Capital Services Archived
Surveys and statistical programs – Documentation: 15-206-X2007009
Description:
This paper examines the effects of alternative specifications of the user costs of capital on the estimated price and volume indices of capital services. It asks how sensitive the results are to the use of exogenous versus endogenous rates of return, to alternate ways of including capital gains, and to whether corrections are made for tax rates. The paper also examines the effect of the various user cost formulae on the measured multifactor productivity growth.
Release date: 2007-04-04
5. National Accounts Advisory Committee: Overview of activities 2004 Archived
Notices and consultations: 13-605-X20050018502
Description:
The National Accounts Advisory Committee reviews and gives advice on the concepts, methods, plans, standards as well as results associated with Statistics Canada's System of National Accounts.
Release date: 2005-04-11
6. Canada/U.S. Labour Productivity Revisions in the Business Sector Archived
Surveys and statistical programs – Documentation: 11F0026M2005003
Description:
This paper examines the revision cycle for labour productivity estimates over the period 2000-2003.
Release date: 2005-03-10
7. The Statistics Canada Productivity Program: Methodology 2000 Archived
Surveys and statistical programs – Documentation: 15-002-M2001001
Description:
This document describes the sources, concepts and methods utilized by the Canadian Productivity Accounts and discusses how they compare with their U.S. counterparts.
Release date: 2004-12-24

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